Stocks continued to climb the wall of worry on Wednesday after a very "whippy" day as the indices jumped above and below the break even line several times in early trading before a late afternoon rally sent many indices to theirs highs of the day by the close. The Dow gained 165-points, and of the major indices, only the Transports were down.
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The Nasdaq had a second day of struggling, although the afternoon rally pushed it back over the north side of flat. That avoided back to back losses yet again for the index, so the Nasdaq hasn't had two consecutive down days in the last 10 weeks.
We saw decent breadth numbers yesterday, and even though the Nasdaq did see more losers than winners on the day, the advance / decline volume ratio was positive.
And, the S&P 500 equal weight index confirms that it was a decent day for the broader market as it added 0.80%, but it still lags the S&P 500 by quite a bit for the year.
Earnings after hours were mostly good with Tesla crushing estimates and rallying, but we saw some selling in Microsoft and Chipolte after the bell despite both beating estimates. Each had tremendous run up into this quarterly report so it was a little sell the news profit taking.
The S&P 500 (C-fund) stayed buoyant all day as buyers stepped up each time the index turned red on Wednesday. We can see the rising trading channel that has been formed off the late June low, and right now the old high looks to be a decent area for support.
The DWCPF (S-fund) gained a half of a percent and closed above the June high for the first time yesterday. It has been keeping up, and actually beating the S&P 500 returns-wise this month, but the breakout yesterday was a few days behind the S&P's breakout, so there could be more to go.
The Dow Transportation Index was down slightly yesterday, but we have a small bull flag that may be indicating a coming attempt to test the June high. However, after the bell CSX was down in after hours trading after reporting earnings so we could see a little pressure in the index, so we'll have a battle between the technicals and the fundamentals today.
The EFA (I-fund) has been performing well, and the dollar's weakness has certainly helped as it (the dollar) made another lower low yesterday. The 50-day EMA just crossed above the 200-day EMA, which is a good sign for the intermediate-term, but a possible short-term overbought indicator.
BND (bond ETF) -- I'm out of words to describe this long, consistent, narrow trend.
The yield on the 10-year has been drifting lower towards the 2020 lows again, and that 5.75% area looks to be a key area of support. We've only see a close below that level twice - ever. Once in April, and once in March (not shown.)
Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the allocations of the TSP and ETF Systems. For more information on how to gain access and a list of the benefits of being a subscriber, please go to: www.tsptalk.com/plus.php
For more info our other premium services, please go here... www.tsptalk.com/premiums.html
Thanks for reading. We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.
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The Nasdaq had a second day of struggling, although the afternoon rally pushed it back over the north side of flat. That avoided back to back losses yet again for the index, so the Nasdaq hasn't had two consecutive down days in the last 10 weeks.
We saw decent breadth numbers yesterday, and even though the Nasdaq did see more losers than winners on the day, the advance / decline volume ratio was positive.
And, the S&P 500 equal weight index confirms that it was a decent day for the broader market as it added 0.80%, but it still lags the S&P 500 by quite a bit for the year.
Earnings after hours were mostly good with Tesla crushing estimates and rallying, but we saw some selling in Microsoft and Chipolte after the bell despite both beating estimates. Each had tremendous run up into this quarterly report so it was a little sell the news profit taking.
The S&P 500 (C-fund) stayed buoyant all day as buyers stepped up each time the index turned red on Wednesday. We can see the rising trading channel that has been formed off the late June low, and right now the old high looks to be a decent area for support.
The DWCPF (S-fund) gained a half of a percent and closed above the June high for the first time yesterday. It has been keeping up, and actually beating the S&P 500 returns-wise this month, but the breakout yesterday was a few days behind the S&P's breakout, so there could be more to go.
The Dow Transportation Index was down slightly yesterday, but we have a small bull flag that may be indicating a coming attempt to test the June high. However, after the bell CSX was down in after hours trading after reporting earnings so we could see a little pressure in the index, so we'll have a battle between the technicals and the fundamentals today.
The EFA (I-fund) has been performing well, and the dollar's weakness has certainly helped as it (the dollar) made another lower low yesterday. The 50-day EMA just crossed above the 200-day EMA, which is a good sign for the intermediate-term, but a possible short-term overbought indicator.
BND (bond ETF) -- I'm out of words to describe this long, consistent, narrow trend.
The yield on the 10-year has been drifting lower towards the 2020 lows again, and that 5.75% area looks to be a key area of support. We've only see a close below that level twice - ever. Once in April, and once in March (not shown.)
Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the allocations of the TSP and ETF Systems. For more information on how to gain access and a list of the benefits of being a subscriber, please go to: www.tsptalk.com/plus.php
For more info our other premium services, please go here... www.tsptalk.com/premiums.html
Thanks for reading. We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.
